Insurance against flood damage: What matters - tips from financial experts

Insurance against flood damage: What matters - tips from financial experts

According to a report from www.mdr.de,

The recent flood damage in Saxony-Anhalt has had devastating consequences for many consumers. Like Christel Hilpert from Niederröblingen, who has invested in her garden for years and is now faced with the question of whether insurance will cover the damage. The damage has not yet been quantified, but it is clear that many of those affected are faced with similar decisions. According to a survey, only 49 percent of property owners in Saxony-Anhalt are insured against natural hazards. The consumer advice center warns of the consequences of a lack of insurance protection and advocates compulsory insurance based on solidarity.

After analyzing the facts, it can be determined that the number of insurance policies against natural hazard damage in Saxony-Anhalt is low and that only around half of property owners are insured against damage caused by floods, heavy rain, landslides or snow pressure. This can have devastating impacts on consumers, particularly in light of future environmental disasters and climate change. If current trends continue, future natural events could cause even greater damage without adequate insurance protection. The question arises as to whether solid compulsory insurance is necessary to protect all property owners.

The introduction of compulsory solidarity insurance against natural hazards is supported by the Saxony-Anhalt consumer advice center and the Ministry of the Environment. According to the consumer advice center, compulsory insurance could be designed in such a way that consumers can influence the insurance premium or deductible through their own precautions. Pensioner Christel Hilpert from Niederröblingen is happy that she is insured against natural hazards and that her garden is also covered.

It turns out that compulsory insurance against natural disasters could be a way to protect consumers from the financial consequences of natural disasters. This could also help raise awareness of climate change and the risks associated with it.